How Much Does Solar Panel Installation Cost
Quoted in this article$6-$9
The average cost of installing solar panels have been a topic deliberated by many homeowners for quite some time. Solar Energy has been studied for several years as a source of renewable energy and as an alternative power source for households and industrial companies. Solar energy is harnessed from the sun’s light and is distributed and converted into solar energy. Since the sun has an unlimited source of power, it is considered to be as one of the most likable sources of electricity.
There are different ways on how solar energy is converted to electricity but the most popular among the ways of distributing it is through a solar panel. Solar panel involves solar cells that absorb the sun’s rays and converting it to become electricity used at home or at work.
Average Cost of Solar Panel
As an alternative source of energy, many households have been looking into solar panels in order to reduce the cost of power usage. But how much would a solar panel installation cost? It would greatly depend on the regular consumption of a household.
If you are thinking of installing a solar panel at your own home you would have to consider how much you usually consume. A total package of installation would include the parts, labor, overhead as well as permitting fee and profit as well.
An average cost of installing solar panels would be around $6-$9 per watt. A residential solar system which usually consumes 3 to 8k watts would cost you approximately $18000 to $56000. Take note that the bigger the system, the lower the cost as many companies are offering a lower price for larger installations.
It is also important to take note that the prices of a solar panel installation cost have vastly decreased since 2002. This is because many companies have offered solar panel installation services and the supply and demand have been stable as of late. In 2002, the average cost of a module was around $4 while a cell was at $2.25. In 2011, the average cost of a module was now at $1.15 while the cell is now at $.90. The decrease in cost may continue.
Can You DIY a Solar Panel Installation?
In the age of technology many are looking into the alternative of installing solar panel by hand. Is this feasible? Is this ideal? The answer is partly, yes. Many consumers are now able to install and maintain their own solar panels. Others hire extra help from professionals during the installation or even electricians to assist in the wiring but it is not advisable to generally build your own solar panel from scratch.
Can you save more if you install your own solar panels? You can practically choose the size of your solar panel system to suit your needs and budget. If you cut back on the labor cost and installation cost you would be able to cut as much as half the regular price of a professional solars power system. The price of self-installing a solar panel would be around $4 per watt.
Do You See the Savings Right Away?
The correct answer for this one would be subjective. Yes, you will see that you have saved dollars in a energy bill in the long run. Though the cost of hiring a professional may be pricy but looking at it from a long term perspective, you can actually save a lot. There are states that provide federal rebate around 30% plus an additional $500 state rebate which can drastically lower the cost of installation and usage of solar energy.
A solar panel has a warranty of 25 years so that the cost of saving can generally be calculated up to the 25th year of usage. But it does not mean that you can no longer use it after 25 years, yes it will still function after that which would have to mean more savings for you.
A household would be able to pay back the installed solar panel after 5 years of usage according to the US Department of Energy while the shortest payback period was only three years after installation. But not only that, if you have plans of selling your house, your solar system can increase the value of your home.
Aside from that, it is well known that the price of electricity increases every year. This would mean that you can save on the cost of energy consumption yearly as you won’t be affected by the yearly increase of power companies.
Is There A Cost-Effective Option than DIY?
Say you are not confident about installing your own solar panel yet you don’t have enough budget to afford a solar panel system all in one go. What should you do? There are many companies that offer payment options to families who are interested in installing a solar panel system to their homes and the average cost of installing solar panels are very affordable with this type of settlement.
There are companies that let you invest in the cost of the system without any down payment at all. You would simply pay the solar system on a monthly basis at a very low and fixed cost. The offer includes the installation of the solar panel including roof warranty as well as energy monitoring. Some even give the tax credits directly to the home owners.
Payment terms for this type of arrangement usually range from 10 to 20 years. In a $0- Down Loan, a company may charge a household around $100 monthly payment. Said loan will have no down payment and the family will own the panel after the loan term. The household will also get the same rebates and cash incentives just like any cash purchases. In 20 years, a family will be able to save around $26000 of an electricity bill.
Households are given many options to choose from with regards to solar panel installation cost depending on their income and budget. A solar panel is not only cost effective but its sustainable energy can help the environment as it is non-polluting, renewable and low maintenance. It can be used in remote locations and the cells are long lasting. But on an environmentalist standpoint, besides saving in cost, a solar panel will also reduce your carbon footprint by using clean and sustainable electricity.